System and method for preparing for a sec financial statement audit by recording corporate governance information on an immutable blockchain

ABSTRACT

The present disclosure describes systems and methods for storing pertinent company information on an immutable blockchain. Preferred embodiments disclose systems and methods of preparing for, and complying with, a SEC financial statement audit by recording corporate governance information on an immutable blockchain. The recorded information, which cannot be subsequently backdated or manipulated, provides SEC auditors compliant and accurate information, which streamlines the audit and reduces costs.

CROSS REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional PatentApplication No. 63/149,023, filed on Feb. 12, 2021, which isincorporated herein by reference for all purposes.

TECHNICAL FIELD

The present disclosure relates to systems and methods for storingpertinent company information on an immutable blockchain, and moreparticularly to preparing for, and complying with, a SEC financialstatement audit by recording corporate governance information on animmutable blockchain, which is time-stamped and cannot be subsequentlybackdated or manipulated.

BACKGROUND OF THE INVENTION

With the demise of the Over-The-Counter (“OTC”) small cap brokeragefirm, today's emerging companies have little choice but to raise privateequity, crowdfund or participate with the (up to now) unregulatedcryptocurrency market over the internet. In turn, these investmentstrategies limit the private investor to high-risk, non-liquid equityownership with little or no diversification and no regulation oraccountability. Accordingly, the present invention leverages thetraditional world of public finance, including securities, options,registrations and SEC compliance, with the development andimplementation of new technologies in the crypto digital equity world,i.e. blockchain technology.

Blockchain technology allows for a verifiable, immutable ledger that cancontinue to grow to a near infinite size, with little impact onscalability or performance. For example, Bitcoin has over 600 milliontransactions contained within a single ledger, as of February 2021. Anyof those 600+ million transactions can be cryptographically verified andensured to be legitimate and without modification. The present inventionleverages this robust, battle-tested technology to develop a secure,efficient trading system that can reduce fraud, reduce cost, and unlocksignificant investment capital for publicly traded companies.

Accordingly, with the solid foundation of blockchain technology, thepresent invention discloses a novel digital trading platform. Thisplatform allows investors to trade shares of a publicly traded companydirectly, while acting as their own market maker. Not only does thisenhance volume and liquidity, but it also aids in creating a true cashmarket, parallel to a market where wholesale market makers can use theirposition to earn additional profits via speculation and arbitrage. Thisworks by accounting for every bid, ask, trade, cancellation, ormodification on the blockchain before any other action takes place. As aresult, all activity is recorded in perpetuity, securely, allowing foranyone to validate the legitimacy of all information. Anyone, at anytime, can validate a single transaction, or the system as a whole, in anefficient and cost-effective manner. And while the entire blockchain isvisible, personally identifiable information is encrypted and onlyavailable to certificate holders, curbing front-running and otherillegal trading activity. Certificate holders may include the customer'sbroker dealer, regulatory agencies, or other entities that have anintrinsic need for this information. In such cases the information willbe limited to only what is necessary (e.g. a broker can only see infofrom their customers and nobody else).

The present invention also discloses systems and methods forfacilitating a public offering for a company on an immutable blockchain.The disclosed systems and methods provide hosting indications ofinterest on a blockchain for potential, initial or secondary futureofferings proposed by a company and provided to interested investors ona first-come, first-serve basis. After qualified investors establishtheir interest in a public offering by returning their indications ofinterest, which are immutably recorded on the blockchain, a list ofprioritized members eligible to invest in the company based upon therecorded time and date of the indication of interest is established, anda fair distribution flow of the public offering is created by providingprioritized members a fair distribution of securities.

The present invention also discloses systems and methods for storingpertinent company information on an immutable blockchain. Moreparticularly, preferred embodiments disclose systems and methods ofpreparing for, and complying with, a SEC financial statement audit byrecording corporate governance information on an immutable blockchain.The recorded information, which cannot be subsequently backdated ormanipulated, provides SEC auditors compliant and accurate information,which streamlines the audit and reduces costs.

Definitions that are applicable to the present invention:

Arbitrage: Arbitrage is the simultaneous purchase and sale of the sameasset in different markets in order to profit from tiny differences inthe asset's listed price. It exploits short-lived variations in theprice of identical or similar financial instruments in different marketsor in different forms.

Bitcoin: cryptocurrency traded on the Chicago Mercantile Exchange as avirtual commodity. Bitcoin is a decentralized crypto digital currency ofa non-existent government.

Blockchain: a disintermediating technology where each transaction iscryptographically signed, and always appended to an immutable ledger,visible to all participants, and distributed across boundaries of trust.A major value proposition of blockchain technology is its ability tofacilitate transactions among numerous participants in an environment ofminimal trust involving only public-key cryptography and a consensusmechanism (e.g., governance). The ledger runs on a set of nodes, each ofwhich may be under the control of a separate company, individual ororganization. These nodes connect to each other in a dense peer-to-peernetwork so that no one node acts as a central point of control orfailure. There is no need for a central intermediary, where one centraldatabase is used to rule transaction validity. A ledger is both anetwork and a database. It has rules and built-in security, and itmaintains internal integrity and its own history. Once a ledgertransaction has received a sufficient level of validation, somecryptography ensures that it can never be replaced or reversed.Transactions are secure, authenticated, and verifiable.

Cash Equity Market: only allows cash transactions. It connects a willingseller in possession of the securities offered to transact a cash saleto a willing buyer. The brokerage firm that holds the securities andcash verifies the customers possession before entering the platform andsettles the trade through its clearing firm.

Certificate Authority: a certificate authority issues (and revokes)enrollment certificates for participating members in the blockchainnetwork. Every operation in the blockchain must be signedcryptographically with X.509 certificates.

Clearing House: a financial institution formed to facilitate theexchange (i.e., clearance) of payments, securities, or derivativestransactions. The clearing house stands between two clearing firms (alsoknown as member firms or participants). Its purpose is to reduce therisk of a member firm failing to honor its trade settlement obligations.

Crypto digital equity: the same as a paper equity but in digital formwhich has been transmitted and protected by cryptographic protocols.

Dark Pools: a privately organized financial forum or exchange fortrading securities and some cryptocurrencies. The new generations ofinvestors may not be aware of the existence of dark pools, but they maybe avoided when trading registered shares over our blockchain platform.

Depository Trust & Clearing Corp (DTCC): an American post-tradefinancial services company providing clearing and settlement services tothe financial markets. It performs the exchange of securities on behalfof buyers and sellers and functions as a central securities depositoryby providing central custody of securities.

Initial Coin Offering (ICO): we define the vast majority of coins ortokens as security derivatives. With the exception of Bitcoin, an ICOdoes not include the benefit of ownership. ICOs are not tied to themonetary success of the company. These offerings may violate multipleprovisions of the Securities Acts of 1933/34.

Internet Digital Offering: (IDO) The trading platform of the currentinvention is engineered to host indications of interest for potentialinitial or secondary future offerings. The trading platform of thecurrent invention is engineered to host indications of interest forpotential, initial or secondary, future offerings proposed by the PublicCompany using the Distributive Ledger Technology on a Blockchain.

Private and Public Blockchain Networks: In private blockchains, datablocks are digitally signed by one or more permitted validators, usingan appropriate scheme to prevent minority control. For (private)institutions, immutability can only be grounded in the good behavior ofother similar institutions, with whom they can sign a contract and sueif need be. So long as a majority of validator nodes are following therules, the end result is stronger and cheaper immutability than anypublic cryptocurrency can offer. Unlike Bitcoin—a public, anonymous,cryptocurrency network—a private blockchain does not need proof-of-work(i.e., mining) to establish transaction validity.

Spot Market: Cash trading market concept wherein the last traderepresents a cash buyer and a willing seller delivering registeredshares. A spot market promotes shareholder confidence, producesliquidity from price movement or arbitrage, and offers low cost of entryand easy access to bid and offer prices for both shareholders andspeculators.

Stock Transfer Agency: a company, usually a third party unrelated tostock transactions, that cancels the name and certificate of theshareholder or broker-dealer who sold the shares of stock andsubstitutes the new owner's name on the official master shareholderlisting.

Token: a Utility token serves as future access to a product or serviceand can be best compared to a gift card or software license. A Securitytoken constitutes an investment contract, where the main use-case, andthe reason for the contributors to buy the tokens, is the anticipationof future profits in form of dividends, revenue share or (most commonly)price appreciation. Under the Howey Test, a transaction is a securityif:

It is an investment of money (later cases have expanded this to includeinvestments of assets other than money)

There is an expectation of profits from the investment

The investment of money is in a common enterprise

Any profit comes from the efforts of a promoter or third party

SUMMARY OF THE INVENTION

Accordingly, one object of the present invention discloses a system andmethod for trading equities on an immutable blockchain. In somepreferred embodiments, customers are invited by broker dealers toparticipate as users on a digital trading platform to take at least onecash immutable action in a spot market, that is, where the financialinstrument is traded for immediate delivery in exchange for cash. Inthese preferred embodiments, the cash immutable action comprises theplacement of at least one of an order, bid or offer, and the at leastone of an order, bid or offer is entered into the digital tradingplatform. Each order, bid or offer also comprises at least one digitalprice, which is immutably stored on the digital trading platform forsubsequent access, review and/or management. In some preferredembodiments, a quote is then generated of the at least one digital pricein order to facilitate at least one transaction on the digital tradingplatform. In some preferred embodiments, the transaction is regulated bythe SEC and/or FINRA by providing these regulatory/governing bodies atleast some access to the order flow and transaction history of users onthe digital trading platform to ensure compliance. In some preferredembodiments, the at least one transaction is completed by integratingthe transaction with an existing brokerage ecosystem, that is, forexample, order entry processes, priority rules, and executionprocedures. In some preferred embodiments, after completion of the atleast one transaction, the broker dealer is charged a fee forfacilitating the invitation of the customers to use the digital tradingplatform. In some preferred embodiments, the fee charged is a flat feeis not assessed for every transaction.

Currently, traditional exchange and broker-dealer trading systems arethe only option for public companies. However, the present digitaltrading platform solves these problems by combining blockchaintechnology (currently used solely in the trading of digital assetsoperating outside the broker dealer, SEC and FINRA rules and regulatorsto fund and trade unregistered companies) with the SEC and broker dealerregulations used with the traditional exchanges for public companies.Moreover, the present disclosure does not allow short selling, andallows only cash immutable order flow. Therefore, market makers, tradersand broker-dealers cannot mount a short attack on the digital tradingplatform. Investors can act as their own market maker by trading thespread between the bid and ask, loading the bid side and offer side withpriced orders backed by cash and securities. Consequently, the presentinvention discloses a new way of trading registered shares of publiccompanies on an immutable blockchain, while in compliance with SEC andbroker dealer regulations, and all transactions come from and settlethrough the broker dealer ecosystem.

The present invention also discloses a digital trading platform that isengineered to host indications of interest for potential, initial orsecondary future offerings proposed by a public company, or soon to bepublic company, using the distributive ledger technology on ablockchain. These embodiments of the present invention allow companiesto take indications of interest, for the offering from the public on afirst come first serve basis. These embodiments include a method offacilitating a public offering for a company on an immutable blockchaincomprising drafting a preliminary prospectus by the company interestedin raising capital, collecting a list of company shareholders, andcollecting a list of non-company shareholders who have met at least aminimum threshold for potential interest in investing in the company.Preferred embodiments include defining a class of potential investors,where the class is aggregated from the list of company shareholders orthe identified non-company shareholders. The preliminary prospectusesare then distributed to at least some members of the identified class ofpotential investors, and a distribution list of the members of the classof potential investors who have received the preliminary prospectus onthe immutable blockchain is recorded. Some preferred embodiments alsoinclude a time stamp of receipt, which is also recorded on the immutableblock chain. Some embodiments also include the name, address and currentinvestment status of the members of the class of potential investors.Preferred embodiments also include receiving an indication of interestfrom at least two members of the class of potential investors whoreceived the preliminary prospectus, which are recorded on the immutableblockchain, and which are prioritized by the time that each wasreceived. In these embodiments, the first indication of interestreceived has priority over the second indication of interest received.Preferred embodiments also include creating a list of prioritizedmembers eligible to invest in the company based upon the recorded timeand date of the indication of interest, and creating a fair distributionflow of the public offering by providing prioritized members a fairdistribution of securities.

The present invention also discloses a system and method of recordingcorporate governance information about a public company on an immutableblockchain. These embodiments include a method of preparing for, andcomplying with, a SEC financial statement audit by recording corporategovernance information on an immutable blockchain that reduce the timeand cost of the audit. These preferred embodiments comprise draftinggeneral corporate matters by a publicly traded company, and recordingthe general corporate matters on the immutable blockchain after creationor after a material change, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed. These preferred embodiments also includedrafting financial and accounting matters by the publicly tradedcompany, and recording the financial and accounting matters on theimmutable blockchain at least every 30 days, wherein each recordingcomprises a time stamp of receipt, and wherein each recording cannot besubsequently manipulated or changed. These preferred embodiments includedrafting tax filing maters by the publicly traded company, and recordingthe tax filing matters on the immutable blockchain within the timerequirements specified by the tax deadlines or after a material change,wherein each recording comprises a time stamp of receipt, and whereineach recording cannot be subsequently manipulated or changed. Thesepreferred embodiments also include drafting SEC filing matters by thepublicly traded company, and recording the SEC filing matters on theimmutable blockchain within the time requirements specified by the SECdeadlines or after a material change, wherein each recording comprises atime stamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed. These embodiments include completing SEC auditordue diligence documents by the publicly traded company, and recordingthe SEC auditor due diligence documents on the immutable blockchain inpreparation of an SEC audit, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed. These preferred embodiments also includecreating a list of certificate holders that have at least some access tothe recorded information about the publicly traded company on theimmutable blockchain, designating an SEC auditor as a certificateholder, and providing at least some of the recorded information on theimmutable blockchain to the SEC auditor for completion of a SECfinancial statement audit of the public company. The auditor is providedimmutably verifiable recorded company information that is time-stampedand that cannot be subject to subsequent data entry manipulation.

The Summary is neither intended nor should it be construed as beingrepresentative of the full extent and scope of the present disclosure.The present disclosure is set forth in various levels of detail in theSummary, as well as in the attached drawings and the DetailedDescription, and no limitation as to the scope of the present disclosureis intended by either the inclusion or non-inclusion of elements,components, etc. in this Summary. Additional aspects of the presentdisclosure will become more readily apparent from the DetailedDescription, particularly when taken together with the drawings.

The above-described benefits, embodiments, and/or characterizations arenot necessarily complete or exhaustive, and in particular, as to thepatentable subject matter disclosed herein. Other benefits, embodiments,and/or characterizations of the present disclosure are possibleutilizing, alone or in combination, as set forth above and/or describedin the accompanying figures and/or in the description herein below.Further details and other features will become apparent after review ofthe following Detailed Description and accompanying drawing figures.

BRIEF DESCRIPTION OF THE DRAWINGS

Example embodiments are illustrated in referenced figures of thedrawing. It is intended that the embodiments and figures disclosedherein are to be considered illustrative rather than limiting.

FIG. 1 discloses a flowchart describing how the digital trading platformintegrates with the various governing bodies and the broker dealerecosystem according to a preferred embodiment.

FIG. 2 discloses a flowchart describing how the digital trading platformintegrates with the broker dealer ecosystem according to a preferredembodiment.

FIG. 3 discloses a method of trading registered equities on an immutableblockchain according to a preferred embodiment.

FIG. 4 discloses a method of trading registered equities on an immutableblockchain according to a preferred embodiment.

FIG. 5 discloses a method of facilitating a public offering for acompany on an immutable blockchain according to a preferred embodiment.

FIG. 6 discloses a method of preparing for, and complying with, a SECfinancial statement audit by recording corporate governance informationon an immutable blockchain, according to a preferred embodiment.

It should be understood that the drawings are not necessarily to scale.In certain instances, details that are not necessary for anunderstanding of the disclosure or that render other details difficultto perceive may have been omitted. It should be understood, of course,that the disclosure is not necessarily limited to the particularembodiments illustrated herein.

DETAILED DESCRIPTION

The present invention provides its benefits across a broad spectrum ofendeavors. It is applicant's intent that this specification and theclaims appended hereto be accorded a breadth in keeping with the scopeand spirit of the invention being disclosed despite what might appear tobe limiting language imposed by the requirements of referring to thespecific examples disclosed. Thus, to acquaint persons skilled in thepertinent arts most closely related to the present invention, apreferred embodiment of the system is disclosed for the purpose ofillustrating the nature of the invention. The exemplary method ofinstalling, assembling and operating the system is described in detailaccording to the preferred embodiment, without attempting to describeall of the various forms and modifications in which the invention mightbe embodied. As such, the embodiments described herein are illustrative,and as will become apparent to those skilled in the art, can be modifiedin numerous ways within the scope and spirit of the invention, theinvention being measured by the appended claims and not by the detailsof the specification.

Although the following text sets forth a detailed description ofnumerous different embodiments, it should be understood that the legalscope of the description is defined by the words of the claims set forthat the end of this disclosure. The detailed description is to beconstrued as exemplary only and does not describe every possibleembodiment since describing every possible embodiment would beimpractical, if not impossible. Numerous alternative embodiments couldbe implemented, using either current technology or technology developedafter the filing date of this patent, which would still fall within thescope of the claims.

It should also be understood that, unless a term is expressly defined inthis patent using the sentence “As used herein, the term ‘______’ ishereby defined to mean . . . ” or a similar sentence, there is no intentto limit the meaning of that term, either expressly or by implication,beyond its plain or ordinary meaning, and such term should not beinterpreted to be limited in scope based on any statement made in anysection of this patent (other than the language of the claims). To theextent that any term recited in the claims at the end of this patent isreferred to in this patent in a manner consistent with a single meaning,that is done for sake of clarity only so as to not confuse the reader,and it is not intended that such claim term by limited, by implicationor otherwise, to that single meaning. Finally, unless a claim element isdefined by reciting the word “means” and a function without the recitalof any structure, it is not intended that the scope of any claim elementbe interpreted based on the application of 35 U.S.C. § 112, subparagraph(f).

As shown in FIGS. 1-4, preferred embodiments disclose a digital tradingplatform 100 system for providing trading or registered equities 102, onan immutable blockchain 104.

In some preferred embodiments, customers 106 are invited by brokerdealers 108 to participate as users on the digital trading platform 100to take at least one action 110 that is cash immutable 112. In somepreferred embodiments, that at least one action is taken in a spotmarket 114, that is, where the financial instrument is traded forimmediate delivery in exchange for cash. In these preferred embodiments,the cash immutable action 110, 112 comprises the placement of at leastone of an order 116, bid 118 or offer 120, and the at least one of anorder 116, bid 118 or offer 120 is entered into the digital tradingplatform 100. Each order 116, bid 118 or offer 120 also comprises atleast one digital price 122, which is immutably stored 124 on thedigital trading platform 100 for subsequent action 126, if necessary,such as, for example, access, review and/or reference. In some preferredembodiments, a quote 128 is then generated of the at least one digitalprice 130 in order to facilitate at least one transaction 132 on thedigital trading platform 100. In some preferred embodiments, thetransaction 132 is regulated by at least one regulatory/governing entity134 such as the SEC and/or FINRA by providing these regulatory/governingbodies 134 at least some access 136 to the order flow and transactionhistory of users on the digital trading platform 100 to ensurecompliance. In some preferred embodiments, the at least one transaction132 is completed by integrating the transaction with an existingbrokerage ecosystem 138, that is, for example, order entry processes,priority rules, and execution procedures. In some preferred embodiments,after completion of the at least one transaction 132, the broker dealer108 is charged a fee 140 for facilitating the invitation of thecustomers 106 to use the digital trading platform 100. In some preferredembodiments, the fee 140 charged is a flat fee and is not assessed forevery transaction 132. In some embodiments, the broker dealer 108 ischarged a fee 140 regardless of whether the invited customer 106 placesan order 116, bid 118 or offer 120.

In various embodiments, users of the disclosed digital trading platform100, i.e. the investing public and more particularly the lower marketcap public companies and their respective potential investors, can usethe disclosed digital trading platform 100 to trade registered equities102 for cash (i.e. spot market 114) using blockchain technology 104,while storing and recording the trading activity using an immutableblockchain ledger 124. In current systems and methods, and unlike thedisclosed digital trading platform, market makers and various middle-mencan front run order flow or crush companies by selling short stock,which can depress the stock price and that company's ability to attractfuture capital. These actions absorb and deflect precious investmentsupport for the companies that need it most. These pitfalls are notfound in the present digital trading platform because order flow isimmutable on the blockchain 104 and is further prioritized by time oforder placement. Thus, for example, bad actors attempting to front runcustomer trades in the broker-dealer ecosystem would be easily visibleto regulatory bodies 134. By eliminating this inefficiency, smallercompanies, like many OTC companies, can increase their ability to raisemuch needed funds.

In some preferred embodiments, the disclosed digital trading platform100 uses Amazon Quantum Ledger Database, a blockchain framework fromAmazon Web Services (“AWS”) and uses the AWS Cloud for transaction datastorage. In these preferred embodiments, the digital trading platformoffers a web-based interface for trading transactions as well as anApplication Programming Interface (API) that directly accesses allimmutable transactions stored on the digital trading platform. The cashtrading market concept found on the digital trading platform 100 issimilar to the spot market in commodities trading wherein the last traderepresents a cash buyer and a willing seller delivering registeredshares. This model, i.e. spot market 114, promotes shareholderconfidence, produces liquidity from price movement or arbitrage, andoffers low cost of entry and easy access to bid and offer prices forboth shareholders and speculators. An additional benefit to the spotmarket 114 is that it is designed to be decentralized, shielding it frommalicious short selling that is present in other parallel markets. Aspart of the spot market 114, order flow is only transparent toregulators and the Company (the issuer of the securities) in real timeon the blockchain 104. Some preferred embodiments implement a privateblockchain with privately appointed Certificate Holders that can accessthe blockchain (e.g. regulatory agencies). In these embodiments, thesystem records all activity using an immutable blockchain ledger. Thus,because of these built-in characteristics, these systems will help renewconfidence in trading shares of publicly traded companies, and morespecifically of OTC companies, over time.

FIG. 1 illustrates how the disclosed digital trading platform 100, (inthis embodiment referred to as the Blackstar Digital Trading Platform“BDTP”), is integrated with the existing FINRA and SEC regulatedbrokerage ecosystem to trade registered equities 102 in some preferredembodiments. In this preferred embodiment, the digital trading platform100 is also integrated with a quotation system 142 (in this embodimentOTC Market Group, however in other embodiments it could also includedifferent broker dealer quoting systems), in order to quote the currentbid, current ask, last trade and volume. In this preferred embodiment, abuying and selling broker dealer 108 invites its customers 106 toparticipate as users on the digital trading platform 100 as buyersproducing buying orders 144 and/or sellers producing selling orders 146to buy and/or sell registered equities 102. The broker dealers 108comply with all governing entity 134 regulations, such as, for example,FinCen and Exchange regulations, KYC and FinCen rules, IRS taxreporting. In some preferred embodiments, orders 116, bids 118, andoffers 120 are entered in the digital trading platform 100 (like, forexample, a specialist's order book) either directly by the broker dealer108 or by the users through trading software supplied by the brokerdealer 108. The digital trading platform 100 records all transactions132, which are immutably stored 124. In these preferred embodiments, thebroker dealer 108, quotation system 142 and the governing bodies 134,i.e. SEC and FINRA, have complete and transparent access to the datastored in the digital trading platform 100. In some preferredembodiments, the digital trading platform offers the regulatory bodies,like FINRA, a single data interface and consolidated history of thetransactions 132.

As described in more detail in FIG. 2, some preferred embodimentsdescribe a system in which certain information is publicly available,while other information is only accessible by predetermined parties. Forexample, when broker dealer 108 registers a new account for a customerto trade on the digital trading platform 100, the platform 100 willgenerate a user-ID with a random value that only the broker dealer 108can link to a customer. Other customer specific information, such ascash or shares brought by that customer to trade on the platform 100 maylater become publicly available, depending upon how/if the cash and/orshares brought by the customer to the platform 100 are traded on the onthe platform and recorded on the immutable blockchain 124. When thebroker/dealer registers a customer account, an asymmetric public key isprovided to encrypt the personally identifiable information (userId) onthe blockchain. Only the broker/dealer will possess the correspondingprivate key necessary to decrypt this information and determine whichtransactions are associated with their customer's accounts. A singlebroker dealer can only decrypt userIds for its own accounts, notaccounts that belong to a different broker/dealer. Additionally, arandom salt value will be appended to the data prior to encryption toprevent a third party knowing which transactions are associated with agiven user. The publicly available information 212, which is recorded onimmutable blockchain 124, may include a publicly visible, randomlygenerated, transaction-ID, an encrypted Maker User ID, an encryptedTaker User ID, the activity type, such as, for example, an order, trade,modify, etc., a trade size, for example the number of shares bought orsold, and the price(s) associated with a transaction 132. At the end ofthe trading day, information from the digital trading platform 100 istransferred back to the broker dealer 108 for reconciliation, such asuser-ID and a list of transaction ID. The reconciliation instructionwill contain a specific number of shares and/or cash that need to betransferred between each broker/dealer. All transaction data will beaggregated in order to reconcile broker/dealer accounts with the leastnumber of transactions necessary.

In other preferred embodiments, involving multiple broker dealersbringing customers to trade on the platform 100, the following exampleshows how the digital trading platform integrates with the multiplebroker dealers:

In this example, User 1, invited by broker dealer 1, brings 1000 sharesof stock A and $1000 of cash to trade on the digital trading platform100. User 1 is assigned a unique user ID that is known to brokerdealer 1. Contemporaneously, User 2, invited by broker dealer 2, alsobrings 1000 shares of Stock A and $1000 of cash to trade on the digitaltrading platform 100. During the trading day, User 1 places an order tosell 100 shares of Stock A at $3 per share, which is recorded on theimmutable blockchain 124. Subsequently, User 2 places an order to buy100 shares of Stock A at market price, which is also recorded on theimmutable blockchain 124. The trade is then executed, where at the endof the day User 1 owns 900 shares of Stock A and $1300 in cash, and User2 owns 1100 shares of Stock A and $700 in cash. The transaction 132 isrecorded on the immutable blockchain 124. At the end of the day, thelist of transactions 132 involving User 1 are sent to broker dealer 1for verification and the list of transactions 132 involving User 2 aresent to broker dealer 2 for verification. After verification,instructions are sent to broker dealer 1 to send 100 shares of Stock Ato broker dealer 2 and instructions are sent to broker dealer 2 to send$300 to broker dealer 1. The transaction 132 is then finalized outsideof the digital trading platform 100 and within the traditional brokerdealer ecosystem 138.

In some preferred embodiments, all exchange activity (i.e. transactions132) will be visible to the public, with the exception of informationthat can identify an individual across transactions 132. In theseembodiments, any such information (account Id, for example) is storedencrypted, using a broadcast encryption algorithm, and thus, forexample, only visible to the customer's broker dealer 108 and regulatorybodies 134. In these embodiments, other users, while being able to seeall transactions 132, will not be able to distinguish exactly who anindividual transaction belongs to. In some preferred embodiments, theencryption algorithm allows for multiple encryption keys to operatesimultaneously and independently of each other. In preferredembodiments, an uninterested third party is the only party to (1) haveaccess to all transaction information and (2) hold authority to revokethe plurality of encryption keys. In other preferred embodiments, thebroker dealer holds sole access to the transaction information andaccess to employment and revocation of the encryption keys.

In preferred embodiments, it is the intent of the digital tradingplatform 100 not to replace the market-makers but to work parallel withthem in the brokerage ecosystem 138 representing a cash spot market 114.In these preferred embodiments, once the transaction 132 has beencompleted between buyer 144 and seller, the broker dealer 108 integrateswith a traditional clearing house 148, depository trust and clearingcorporation 150 and transfer agency 152 to finalize the transaction 132.

The present invention also discloses a method 300 of trading equities onan immutable blockchain. In some preferred embodiments, at least onecustomer is invited by at least one broker dealer to participate as auser on a digital trading platform to take at least one action 302. Insome preferred embodiments, the at least one action is cash immutable,and the cash immutable action comprises the placement of at least one ofan order, bid or offer 304. In these embodiments, the at least one of anorder, bid or offer is entered into the digital trading platform, andthe at least one of the order, bid or offer comprises at least onedigital price 306. The at least one digital price is then stored on thedigital trading platform and a quote of the at least one digital priceis provided in order to facilitate at least one transaction 308. Inthese embodiments, the at least one transaction is regulated byproviding at least some access of the at least one transaction on thedigital trading platform to at least one governing entity, such as, forexample the SEC or FINRA 310. In these embodiments, the at least onetransaction is completed on the digital trading platform by integratingwith an existing brokerage ecosystem 312, and the at least one brokerdealer is charged a fee for facilitating the invitation of the at leastone customer to use the digital trading platform 314.

In other preferred embodiments, the invention discloses a method 400 oftrading registered equities on an immutable blockchain whereas at leasttwo customers are invited by at least one broker dealer to participateas users on a digital trading platform to take at least two actions 402.In these embodiments, the at least two actions comprise of an order, bidor offer 404. In these preferred embodiments, the at least two actionsare entered into the digital trading platform and the at least twoactions comprise at least two digital prices 406. In these embodiments,an order flow is created, which incorporates the at least two digitalprices, by prioritizing the at least two actions by the time that eachaction was entered into the digital trading platform, where the firstaction entered into the digital trading platform has priority over thesecond action entered into the digital trading platform 408. In theseembodiments, the at least two digital prices are stored on the digitaltrading platform 410, a quote of the at least two digital prices isprovided in order to facilitate at least one transaction 412, and the atleast one transaction is completed on the digital trading platform 414.

In some embodiments, the method also includes adhering to least oneorder entry process when the digital trading platform is integrating theexisting brokerage ecosystem. Some preferred embodiments also includeadhering to the priority rules and execution procedures when integratingwith the existing brokerage ecosystem. To facilitate efficiency, somepreferred embodiments also include providing at least one governingentity (i.e. SEC and/or FINRA) with a single data interface andconsolidated history of the at least one transaction on the digitaltrading platform. In some of these preferred embodiments, the governingbodies are provided complete access to the transaction history of thedigital trading platform in order to ensure that the broker dealer is incompliance with the applicable exchange and reporting rules andregulations. In some preferred embodiments, the immutable blockchaintechnology used in or associated with the digital trading platformprevents order manipulation, such as, for example, front running orders.In most preferred embodiments, the digital trading platform operates ona cash spot market. In these embodiments, the spot market is designed tobe decentralized, shielding it from short selling that is present inother parallel markets. As part of the spot market, order flow is onlytransparent to regulators and the issuer of the securities in real timeon the blockchain. In these embodiments, the spot market of the digitaltrading platform does not replace the market-makers, but rather works inparallel with them in the brokerage ecosystem. The price differential inthe parallel markets creates the opportunity for arbitrage, whichcreates extra liquidity for a buyer and/or seller to get in and out ofthe market.

At the end of a transaction, some preferred embodiments also includecharging the broker dealer a fee, and in some cases a fixed fee, forfacilitating the at least one transaction on the digital tradingplatform. In other preferred embodiment, no fee may be charged to thebroker dealer, or the broker dealer may be compensated in other ways.

In some preferred embodiments, the digital trading platform 100 of thecurrent invention is engineered to host indications of interest forpotential, initial or secondary future offerings proposed by a publiccompany or soon to be public company using the distributive ledgertechnology on a blockchain. In the U.S., there are over 27,000 publiccompanies and less than 1000 broker dealers that have the clientcapacity and time to fund only a few deals per year. Thus, theembodiments of the present invention engineered to host indications ofinterest facilitate all public companies on the platform to reach out tocurrent and old shareholders and, through a public announcement,distribute a preliminary prospectus, and take indications of interestfor the offering from the public on a first come first serve basis.Current systems and methods involving initial and secondary offeringsare replete with manipulation related to investor access. Embodiments ofthe current invention prevent such manipulation because the disclosedsystems and methods facilitate a public offering on an immutableblockchain that prioritizes interested investors on a first-come, firstserve basis. That is, an investor who shows timely interest in anoffering will have access, which is verifiable on the blockchain, to afair distribution of the requested securities. In some preferredembodiments, once the company has sufficient interest in the offering,it can choose to engage a broker dealer to underwrite and then qualifyall customers on the list. In some preferred embodiments, regulatoryrules, i.e. SEC and FINRA, apply to the process whether the brokerdealer or the company does a self-underwriting. The platform 100 canthen facilitate a fair distribution to the public.

Some preferred embodiments also include a method 500 of facilitating apublic offering for a company on an immutable blockchain comprisingdrafting a preliminary prospectus by the company interested in raisingcapital 502, collecting a list of company shareholders 504, andcollecting a list of non-company shareholders who have met at least aminimum threshold for potential interest in investing in the company506. In some embodiments, the list of the company shareholders willinclude both holders of common and preferred shares in the company. Someembodiments identify shareholders in book entry form, while otherembodiments identify shareholders in certificated form. In someembodiments, a former investor in the company qualifies as meeting theminimum threshold for showing potential interest in the company and iseligible to receive the preliminary prospectus. A former investor couldinclude a former owner of company stock or equity, or a day/swing traderwho may enter in and out of company stock on a daily or weekly basis.

Preferred embodiments include defining a class of potential investors,where the class is aggregated from the list of company shareholders orthe identified non-company shareholders 508. The preliminaryprospectuses are then distributed to at least some members of theidentified class of potential investors 510, and a distribution list ofthe members of the class of potential investors who have received thepreliminary prospectus on the immutable blockchain is recorded 512. Somepreferred embodiments also include a time stamp of receipt, which isalso recorded on the immutable blockchain. Some embodiments also includethe name, address and current investment status of the members of theclass of potential investors. Preferred embodiments also includereceiving an indication of interest from at least two members of theclass of potential investors who received the preliminary prospectus514, which are recorded on the immutable blockchain, and which areprioritized by the time that each was received 516. In theseembodiments, the first indication of interest received has priority overthe second indication of interest received. Preferred embodiments nextinclude creating a list of prioritized members eligible to invest in thecompany based upon the recorded time and date of the indication ofinterest 518, and creating a fair distribution flow of the publicoffering by providing prioritized members a fair distribution ofsecurities 520.

In preferred embodiments, the described method includes members havingto disclose their levels of interest by monetary amount. In some ofthese embodiments, which comprise a set threshold of capital to raise,interested investors are awarded shares on a first come first servebasis until that threshold is met. For example, if a company wants toraise $10 million in an offering, investor A, who shows interest in theoffering for $7 million on Monday, and investor B, who shows interest inthe offering for $3 million on Tuesday, would be awarded their respectedlevels of interest. Under this example, investor C, who shows interestin the offering for $5 million on Wednesday, would not be entitled toany shares. Other embodiments of the present invention would look todiscount the available number shares to investors A and B, and wouldallow investor C to have access to a discounted level of interest.

In other embodiments, the amount of capital (or range) a company intendsto raise and the amount a single investor can contribute is included inthe preliminary prospectus. For example, a company intending to raise$10 million in an offering could limit a single investors investmentamount to $50,000, made available to the first 200 qualified individualswho show interest. In some embodiments, a date/deadline may be includedin the opportunity to invest in an offering. In some embodiments, aninvestment minimum may act as a way to prioritize qualified investors.In other embodiments having no investment minimum, the timing of theexpressed indication of interest, in relation to other interestedinvestors, is the only method in which prioritization is measured.

In some preferred embodiments, the platform 100 of the current inventionis engineered to host corporate governance information of a publiclytraded company in order to prepare for, and comply with, a SEC financialstatement audit. By storing specifically relevant information on theimmutable blockchain 124, public companies can reduce both the cost andtime spent on preparing for an audit. Storing information in this waycan also give assurance to the auditor that information is accurate andhas not been backdated or manipulated. These preferred embodimentsinclude a method 600 of preparing for, and complying with, a SECfinancial statement audit by recording corporate governance information.These preferred embodiments include drafting general corporate mattersby a publicly traded company 602 and recording the general corporatematters on the immutable blockchain after creation or after a materialchange 604. In these embodiments, each recording comprises a time stampof receipt, and each recording cannot be subsequently manipulated orchanged on the blockchain. The general matters include informationroutinely requested by an SEC auditor, specifically: articles ofincorporation, bylaws, board of director minutes, contractualobligations and commitments, lease agreements—operating or capital,purchase agreements, annual corporate filings for state regulatorypurposes, employment agreements or contracts, consulting agreements orcontracts, litigation matters involving the company, corporateacquisition agreements or valuation reports, debt or equity agreements,and a list of company shareholders. In some embodiments, all of thesedocuments may be required to be stored on the immutable blockchain 124.In other embodiments, only some of these documents/information may berequired to be stored on the immutable blockchain 124.

These preferred embodiments also include drafting financial andaccounting matters by the publicly traded company 606 and recording thefinancial and accounting matters on the immutable blockchain at leastevery 30 days 608. Each recording comprises a time stamp of receipt, andeach recording cannot be subsequently manipulated or changed. Thefinancial and accounting matters include information routinely requestedby and SEC auditor, specifically: detail trail balance, general ledger,journal entries not system generated, draft financial statements, cashflow and EPS (earnings per share) schedules, internal control andchanges, cash accounts—bank statements and reconciliations as of end ofperiod, repaid expenses—documentation of additions and periodamortization/write-offs, receivables—documentation for changes fromprior period and analysis of collectability, accounts payable aging,accrued expenses detail listing, notes payable, equity transactions, andrevenue. In some embodiments, all of these documents may be required tobe stored on the immutable blockchain 124. In other embodiments, onlysome of these documents/information may be required to be stored on theimmutable blockchain 124. In some preferred embodiments, the notepayable information includes note payable roll forward schedule with BCFcalculation, note conversion calculations for all transactions duringthe period, and/or note agreement for outstanding notes and notessettled. In some preferred embodiments, the equity transactions includeequity activity, supporting documents for all shares, options & warrantsissued, valuation of any warrants or options, and stock ledger showingnumber of outstanding shares and listing of shareholders. In someembodiments, the revenue information includes an explanation forsignificant changes to revenue steam and expenses, new products orsources of revenue, changes in supply chain for inventory, and/or majorcustomers and vendors.

Preferred embodiments also include drafting tax filing maters by thepublicly traded company 610 and recording the tax filing matters on theimmutable blockchain within the time requirements specified by the taxdeadlines or after a material change 612. Each recording comprises atime stamp of receipt and each recording cannot be subsequentlymanipulated or changed. In these preferred embodiments, the tax filingmatters include annual filings for federal and state tax authorities,local tax filings—sales tax; and/or employment tax filings—quarterly andannual.

Preferred embodiments also include drafting SEC filing matters by thepublicly traded company 614 and recording the SEC filing matters on theimmutable blockchain within the time requirements specified by the SECdeadlines or after a material change 616. Each recording comprises atime stamp of receipt and each recording cannot be subsequentlymanipulated or changed. In these preferred embodiments, the SEC filingmatters include filing form 10K, filing form 10Q, filing form 8K,registration statements, private placement offering memorandums; and/orpress releases.

Preferred embodiments also include completing SEC auditor due diligencedocuments by the publicly traded company 618. Some preferred embodimentsalso include recording the SEC auditor due diligence documents on theimmutable blockchain in preparation of an SEC audit, ether aftercompleted or after signoff by the SEC auditor at the completion of anaudit. Each recording comprises a time stamp of receipt, and eachrecording cannot be subsequently manipulated or changed. Preferredembodiments also include creating a list of certificate holders thathave at least some access to the recorded information about the publiclytraded company on the immutable blockchain, designating an SEC auditoras a certificate holder 620, and providing at least some of the recordedinformation on the immutable blockchain to the SEC auditor forcompletion of a SEC financial statement audit of the public company 622.In these embodiments, the auditor is provided immutably verifiablerecorded company information that is time-stamped and that cannot besubject to subsequent data entry manipulation.

Other preferred embodiments include systems and methods for preparingfor a merger or acquisition and collecting and storing required andother pertinent information on an immutable blockchain. Like otherembodiments, the collected merger and/or acquisition information isstored on an immutable blockchain, which is time-stamped and cannot besubsequently manipulated or changed. These embodiments apply both topublic and private companies that are currently undergoing a merger oracquisition, or companies that may undergo one in the future.Information from both companies is stored on the immutable blockchain,and may include, for example, in certain preferred embodiments, certaincorporate governance information and/or audit information. In somepreferred embodiments, the categories of information collected andstored from both companies involved in the transaction may be the same.In other preferred embodiments, the categories of information collectedand stored from both companies may be different. In some preferredembodiments, information from both companies is collected and stored atleast every 30 days until close of the transaction, wherein eachrecording comprises a time stamp of receipt, and wherein each recordingcannot be subsequently manipulated or changed. These preferredembodiments may also include drafting tax filing maters by the targetcompanies and recording the tax filing matters on the immutableblockchain within the time requirements specified by the tax deadlinesor after a material change, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed.

In most preferred embodiments, financial statements must be prepared byboth companies and stored on the immutable blockchain, which alsoincludes updating these financial statements and saving them on theblockchain until the close of the transaction, before any offering ofpublic or private securities can be made. In most preferred embodiments,these statements and disclosures used in preparation will dictate theoffering terms and story into a memorandum or prospectus. In somepreferred embodiments dealing with private offerings, SEC reportinginformation, i.e. SEC filing matters and SEC auditor documents, may notbe required. However, in most preferred embodiments, officer, directorand company disclosures would still need to be drafted and stored on theblockchain, which could then be made available to auditors upon theirrequest.

Other preferred embodiments may include a private company or SPAC(special purpose acquisition company) collecting information and storingthat information on an immutable blockchain when preparing for an IPO.Generally, a private company offering of a private placement ofsecurities or assets to accredited investors is not required to disclosean audit, but current unaudited statements need to be available toinvestors upon request. Therefore, in some embodiments, the presentsystems and methods will require an audit to be stored on the immutableblockchain for reference during these transactions. In some preferredembodiments, information from the private company is collected andstored at least every 30 days until close of the transaction, whereineach recording comprises a time stamp of receipt, and wherein eachrecording cannot be subsequently manipulated or changed.

Other preferred embodiments may also incorporate similar aspects of thedisclosed systems and methods, i.e. drafting and storing pertinentinformation on an immutable blockchain, and may facilitate a wide rangeof related transactions. For example, all SEC, State or Federalregulated offerings, that require pre-filing, post-filing or areexempted from registration, have some level of offering documentationand financial reporting requirement to the SEC and/or public and privateshareholders. In this regard, the present invention of storinginformation on an immutable blockchain may also include: (1) a public topublic-secondary offering; (2) public to private offering-privateplacement of discounted restricted securities, made available toaccredited investors only; (3) private to public offering, i.e.IPO-SPAC; and (4) private to private offering, i.e. pre-IPO, gen/limitedpartnership, private placement of securities, assets or income producingassets, made available to accredited investors only. These embodimentsmay function similarly to previously disclosed systems and methods ofthe present inventions, for example, by drafting the requireddocumentation necessary to complete the transaction by all partiesinvolved, adhering to any timeliness requirements, and storing thepertinent information on an immutable blockchain for verification andreview by any third parties.

Other embodiments include systems and methods of recording a certifiedtrack record for trading stock and commodities on an immutableblockchain. These embodiments disclose storing pertinent tradinginformation on an immutable blockchain for preparing for, and complyingwith, a third party certified accounting method for recording stock orcommodity executed trades. The recorded information, which cannot besubsequently backdated or manipulated, provides third party auditablecompliant and accurate information, which certifies the track record.These systems and methods are useful to traders who need an objectiveway to prove their trading track record, which when stored on animmutable blockchain, is not subject to manipulation. For example, theseembodiments include recording the trading and execution on the immutableblockchain immediately and at least every day a trade is executed withcumulative totals daily at market close, wherein each recordingcomprises a time stamp of receipt. In some preferred embodiments, therecordings include the type of stock or commodity bought or sold, theprice, number of shares, profits or losses, holding period, etc. Byrecording this information on the blockchain, a trader can track andprovide information related to successful trading patterns, history,overall performance, sector performance, etc., which may be necessary toattract new and/or additional investment.

All directional references (e.g. top, bottom, front, back) are only usedfor identification purposes to aid the reader's understanding of theembodiments of the present invention, and do not create limitations,particularly as to the position, orientation, or use of the inventionunless specifically set forth in the claims. Joinder references (e.g.attached, coupled, connected, and the like) are to be construed broadlyand may include intermediate members between a connection of elementsand relative movement between elements. As such, joinder references donot necessarily infer that two elements are directly connected and infixed relation to each other.

The above-described benefits, embodiments, and/or characterizations arenot necessarily complete or exhaustive, and in particular, as to thepatentable subject matter disclosed herein. Other benefits, embodiments,and/or characterizations of the present invention are possibleutilizing, alone or in combination, as set forth above and/or describedin the accompanying figures and/or in the description herein below.

The phrases “at least one,” “one or more,” and “and/or,” as used herein,are open-ended expressions that are both conjunctive and disjunctive inoperation. For example, each of the expressions “at least one of A, Band C,” “at least one of A, B, or C,” “one or more of A, B, and C,” “oneor more of A, B, or C,” and “A, B, and/or C” means A alone, B alone, Calone, A and B together, A and C together, B and C together, or A, B andC together.

Unless otherwise indicated, all numbers expressing quantities,dimensions, conditions, and so forth used in the specification anddrawing figures are to be understood as being approximations which maybe modified in all instances as required for a particular application ofthe novel assembly and method described herein.

The term “a” or “an” entity, as used herein, refers to one or more ofthat entity. As such, the terms “a” (or “an”), “one or more” and “atleast one” can be used interchangeably herein.

The use of “including,” “comprising,” or “having” and variations thereofherein is meant to encompass the items listed thereafter and equivalentsthereof as well as additional items. Accordingly, the terms “including,”“comprising,” or “having” and variations thereof can be usedinterchangeably herein.

It shall be understood that the term “means” as used herein shall begiven its broadest possible interpretation in accordance with 35 U.S.C.,Section 112(f). Accordingly, a claim incorporating the term “means”shall cover all structures, materials, or acts set forth herein, and allof the equivalents thereof. Further, the structures, materials, or actsand the equivalents thereof shall include all those described in theSummary, Brief Description of the Drawings, Detailed Description and inthe appended drawing figures.

In methodologies directly or indirectly set forth herein, various stepsand operations are described in one possible order of operation, butthose skilled in the art will recognize that steps and operations may berearranged, replaced, or eliminated without necessarily departing fromthe spirit and scope of the present invention. It is intended that allmatter contained in the above description or shown in the accompanyingdrawings shall be interpreted as illustrative only and not limiting.Changes in detail or structure may be made without departing from thespirit of the invention as defined in the appended claims.

The above-described benefits, embodiments, and/or characterizations arenot necessarily complete or exhaustive, and in particular, as to thepatentable subject matter disclosed herein. Other benefits, embodiments,and/or characterizations of the present invention are possible.

What is claimed:
 1. A method of preparing for, and complying with, a SECfinancial statement audit by recording corporate governance informationon an immutable blockchain comprising: drafting general corporatematters by a publicly traded company; recording the general corporatematters on the immutable blockchain after creation or after a materialchange, wherein each recording comprises a time stamp of receipt, andwherein each recording cannot be subsequently manipulated or changed;drafting financial and accounting matters by the publicly tradedcompany; recording the financial and accounting matters on the immutableblockchain at least every 30 days, wherein each recording comprises atime stamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed; drafting tax filing maters by the publiclytraded company; recording the tax filing matters on the immutableblockchain within the time requirements specified by the tax deadlinesor after a material change, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed; drafting SEC filing matters by the publiclytraded company; recording the SEC filing matters on the immutableblockchain within the time requirements specified by the SEC deadlinesor after a material change, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed; completing SEC auditor due diligence documentsby the publicly traded company; recording the SEC auditor due diligencedocuments on the immutable blockchain in preparation of an SEC audit,wherein each recording comprises a time stamp of receipt, and whereineach recording cannot be subsequently manipulated or changed; creating alist of certificate holders that have at least some access to therecorded information about the publicly traded company on the immutableblockchain; designating an SEC auditor as a certificate holder who hasat least some access to the recorded information of the publicly tradedcompany on the immutable blockchain; and providing at least some of therecorded information on the immutable blockchain to the SEC auditor forcompletion of a SEC financial statement audit of the public company,wherein the auditor is provided immutably verifiable recorded companyinformation that is time-stamped and that cannot be subject tosubsequent data entry manipulation.
 2. The method of claim 1, whereinthe recorded general corporate matters comprise at least two of Articlesof incorporation; Bylaws; Board of Director minutes; Contractualobligations and commitments; Lease agreements—operating or capital;Purchase agreements; Annual corporate filings for state regulatorypurposes; Employment agreements or contracts; Consulting agreements orcontracts; Litigation matters involving the company; Corporateacquisition agreements or valuation reports; Debt or equity agreements;and A list of company shareholders.
 3. The method of claim 1, whereinthe recorded financial and accounting matters comprise at least two ofDetail trail balance; General ledger; Journal entries not systemgenerated; Draft financial statements; Cash flow and EPS (earnings pershare) schedules; and Review of internal control and changes.
 4. Themethod of claim 1, wherein the recorded financial and accounting matterscomprise at least two of Cash accounts—bank statements andreconciliations as of end of period; Prepaid expenses—documentation ofadditions and period amortization/write-offs; Receivables—documentationfor changes from prior period and analysis of collectability; Accountspayable aging; and Accrued expenses detail listing.
 5. The method ofclaim 1, wherein the recorded financial and accounting matters comprisethe recording of notes payable, further comprising at least one of Notepayable roll forward schedule with BCF calculation; Note conversioncalculations for all transactions during the period; and/or Noteagreement for outstanding notes and notes settled.
 6. The method ofclaim 1, wherein the recorded financial and accounting matters comprisethe recording of equity transactions, further comprising at least one ofEquity activity; Supporting documents for all shares, options & warrantsissued; Valuation of any warrants or options; and Stock Ledger showingnumber of outstanding shares and listing of shareholders.
 7. The methodof claim 1, wherein the recorded financial and accounting matterscomprise the recording of revenue, further comprising at least one ofExplanation for significant changes to revenue steam and expenses; Newproducts or sources of revenue; Changes in supply chain for inventory;and Major customers and vendors.
 8. The method of claim 1, wherein thetax filing matters comprise at least two of Annual filings for federaland state tax authorities; Local tax filings—sales tax; and Employmenttax filings—quarterly and annual.
 9. The method of claim 1, wherein theSEC filing matters comprise at least two of Filing form 10K; Filing form10Q; Filing form 8K; Registration statements; Private placement offeringmemorandums; and Press releases.
 10. A method of preparing for a SECfinancial statement audit by recording corporate governance informationon an immutable blockchain comprising: drafting general corporatematters by a publicly traded company, wherein the general corporatematters comprise at least four of articles of incorporation, bylaws,board of director minutes, contractual obligations and commitments,lease agreements—operating or capital, purchase agreements, annualcorporate filings for state regulatory purposes, employment agreementsor contracts, consulting agreements or contracts, litigation mattersinvolving the company, corporate acquisition agreements or valuationreports, debt or equity agreements; and a list of company shareholders;recording the general corporate matters on the immutable blockchainafter creation or after a material change, wherein each recordingcomprises a time stamp of receipt, and wherein each recording cannot besubsequently manipulated or changed; drafting financial and accountingmatters by the publicly traded company; recording the financial andaccounting matters on the immutable blockchain at least every 30 days,wherein each recording comprises a time stamp of receipt, and whereineach recording cannot be subsequently manipulated or changed; draftingtax filing maters by the publicly traded company; recording the taxfiling matters on the immutable blockchain within the time requirementsspecified by the tax deadlines or after a material change, wherein eachrecording comprises a time stamp of receipt, and wherein each recordingcannot be subsequently manipulated or changed; drafting SEC filingmatters by the publicly traded company; recording the SEC filing matterson the immutable blockchain within the time requirements specified bythe SEC deadlines or after a material change, wherein each recordingcomprises a time stamp of receipt, and wherein each recording cannot besubsequently manipulated or changed; completing SEC auditor duediligence documents by the publicly traded company; recording the SECauditor due diligence documents on the immutable blockchain inpreparation of an SEC audit, wherein each recording comprises a timestamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed; creating a list of certificate holders that haveat least some access to the recorded information about the publiclytraded company on the immutable blockchain; designating an SEC auditoras a certificate holder who has at least some access to the recordedinformation of the publicly traded company on the immutable blockchain;and providing at least some of the recorded information on the immutableblockchain to the SEC auditor for completion of an audit of the publiccompany, wherein the auditor is provided immutably verifiable recordedcompany information that is time-stamped and that cannot be subject tosubsequent data entry manipulation, and wherein the time or cost of theaudit is reduced based upon the company's storage of corporategovernance documents on the immutable blockchain.
 11. The method ofclaim 10, wherein the recorded financial and accounting matters compriseat least two of Detail trail balance; General ledger; Journal entriesnot system generated; Draft financial statements; Cash flow and EPS(earnings per share) schedules; and Review of internal control andchanges.
 12. The method of claim 10, wherein the recorded financial andaccounting matters comprise at least two of Cash accounts—bankstatements and reconciliations as of end of period; Prepaidexpenses—documentation of additions and period amortization/write-offs;Receivables—documentation for changes from prior period and analysis ofcollectability; Accounts payable aging; and Accrued expenses detaillisting.
 13. The method of claim 10, wherein the recorded financial andaccounting matters comprise the recording of notes payable, furthercomprising at least one of Note payable roll forward schedule with BCFcalculation; Note conversion calculations for all transactions duringthe period; and/or Note agreement for outstanding notes and notessettled.
 14. The method of claim 10, wherein the recorded financial andaccounting matters comprise the recording of equity transactions,further comprising at least one of Equity activity; Supporting documentsfor all shares, options & warrants issued; Valuation of any warrants oroptions; and Stock Ledger showing number of outstanding shares andlisting of shareholders.
 15. The method of claim 10, wherein therecorded financial and accounting matters comprise the recording ofrevenue, further comprising at least one of Explanation for significantchanges to revenue steam and expenses; New products or sources ofrevenue; Changes in supply chain for inventory; and Major customers andvendors.
 16. The method of claim 10, wherein the tax filing matterscomprise at least two of Annual filings for federal and state taxauthorities; Local tax filings—sales tax; and Employment taxfilings—quarterly and annual.
 17. The method of claim 10, wherein theSEC filing matters comprise at least two of Filing form 10K; Filing form10Q; Filing form 8K; Registration statements; Private placement offeringmemorandums; and Press releases.
 18. A method of preparing for a SECfinancial statement audit by recording information on an immutableblockchain comprising: drafting general corporate matters by a publiclytraded company, wherein the general corporate matters comprise articlesof incorporation, bylaws, board of director minutes, contractualobligations and commitments, lease agreements—operating or capital,purchase agreements, annual corporate filings for state regulatorypurposes, employment agreements or contracts, consulting agreements orcontracts, litigation matters involving the company, corporateacquisition agreements or valuation reports, debt or equity agreements;and a list of company shareholders; recording the general corporatematters on the immutable blockchain after creation or after a materialchange, wherein each recording comprises a time stamp of receipt, andwherein each recording cannot be subsequently manipulated or changed;drafting financial and accounting matters by the publicly tradedcompany, wherein the financial and accounting matters comprise detailtrail balance, general ledger, journal entries not system generated,draft financial statements, cash flow and EPS (earnings per share)schedules, internal control and changes, cash accounts—bank statementsand reconciliations as of end of period, repaid expenses—documentationof additions and period amortization/write-offs,receivables—documentation for changes from prior period and analysis ofcollectability, accounts payable aging, accrued expenses detail listing,notes payable, equity transactions, and revenue; recording the financialand accounting matters on the immutable blockchain at least every 30days, wherein each recording comprises a time stamp of receipt, andwherein each recording cannot be subsequently manipulated or changed;drafting tax filing maters by the publicly traded company, wherein thetax filing matter comprise annual filings for federal and state taxauthorities, local tax filings—sales tax, and Employment taxfilings—quarterly and annual; recording the tax filing matters on theimmutable blockchain within the time requirements specified by the taxdeadlines or after a material change, wherein each recording comprises atime stamp of receipt, and wherein each recording cannot be subsequentlymanipulated or changed; drafting SEC filing matters by the publiclytraded company, wherein the SEC filing matters comprise filing form 10K,filing form 10Q, filing form 8K, registration statements, privateplacement offering memorandums, and press releases; recording the SECfiling matters on the immutable blockchain within the time requirementsspecified by the SEC deadlines or after a material change, wherein eachrecording comprises a time stamp of receipt, and wherein each recordingcannot be subsequently manipulated or changed; completing SEC auditorrequested due diligence documents by the publicly traded company;recording the SEC auditor requested due diligence documents on theimmutable blockchain in preparation of an SEC audit, wherein eachrecording comprises a time stamp of receipt, and wherein each recordingcannot be subsequently manipulated or changed; creating a list ofcertificate holders that have at least some access to the recordedinformation of the publicly traded company on the immutable blockchain;designating an SEC auditor as a certificate holder who has at least someaccess to the recorded information of the publicly traded company on theimmutable blockchain; and providing at least some of the recordedinformation on the immutable blockchain to the SEC auditor forcompletion of an audit of the public company, wherein the auditor isprovided immutably verifiable recorded company information that istime-stamped and that cannot be subject to subsequent data entrymanipulation.
 19. The method of claim 18, wherein the notes payablefurther comprise Note payable roll forward schedule with BCFcalculation; Note conversion calculations for all transactions duringthe period; and/or Note agreement for outstanding notes and notessettled.
 20. The method of claim 18, wherein the equity transactionsfurther comprise Equity activity; Supporting documents for all shares,options & warrants issued; Valuation of any warrants or options; andStock Ledger showing number of outstanding shares and listing ofshareholders.
 21. The method of claim 18, wherein the revenue furthercomprises Explanation for significant changes to revenue steam andexpenses; New products or sources of revenue; Changes in supply chainfor inventory; and Major customers and vendors.